ANET · Earnings call · 2026Q3T · Full report

Working Capital Changes

Arista Networks, Inc. · 2026-11-03 · Importance 23 · Surprise 22

Days sales outstanding declined to 59 days from 68 days in Q2 because of the timing of customer shipments and invoicing. Accounts payable days fell to 48 from 57, reflecting the timing of inventory receipts and payments. Total deferred revenue was approximately $6.8 billion, down from $6.9 billion in Q2; product deferred revenue declined $86 million sequentially.

Key facts

• Arista expects inventory fluctuations to continue and elevated balances could affect the timing of operating cash flow ahead of customer deployments.
• Arista's inventory turns were 1.6 in Q3, down from 1.7 in Q2, and inventory was $3.2 billion, up from $2.5 billion.
• Arista's Q3 DSOs were 59 days, down from 68 days in Q2 due to the timing of customer shipments and invoicing.
• Arista's accounts payable days were 48 days, down from 57 days in Q2, reflecting inventory receipt and payment timing.